In vertebrates, the ectoderm is subdivided during gastrulation into four primary fates: epidermis and central nervous system (CNS) on the ventral and dorsal surfaces, respectively, and neural crest and sensory placodes located between these two domains. The goal of this project is to understand the mechanisms that determine how ectodermal cells choose among these pathways, and how the ensuing tissue patterning and differentiation are regulated, with a primary focus on the neural crest. Neural crest induction in Xenopus requires two signals, a partially attenuated BMP signal and a Wnt/beta catenin signal. We have found that the transcription factor TFAP2alpha is responsible for conveying the BMP signal to the genome, and activation of a broad spectrum of neural crest-specific genes. We used a hormone-inducible version of AP2alpha as a tool in conjunction with microarray analysis to identifiy target genes in both epidermis and neural crest. We are now focusing our research on determining the function of a small number of these genes. In particular, we are interested in two; one is a gene we named "Inca" (for Induced in Neural Crest by AP2). Inca is conserved in sequence and expression pattern in frogs, mice, and zebrafish. In the frog and zebrafish, we have used antisense oligonucleotides to show that Inca is required for proper development of the craniofacial cartilage and bones and other tissues where neural crest is involved. Yeast two-hybrid analysis has identified a p21-activated kinase, PAK4, as an interaction partner with Inca, supporting a model in which Inca functions to regulate cytoskeletal dynamics during neural crest cell migration and differentiation. Another gene encodes a novel protocadherin, PCNS, which is an adhesion molecule that is transiently expressed in neural crest and developing somites. Loss of PCNS results in failure of neural crest cell migration and also in abnormal somite and axial muscle development. Since these genes are conserved throughout vertebrate phylogeny, we expect our findings to broad relevance to biomedical research and human health and development.